In 1998, the National People`s Congress promulgated the PRC Exclusive Economic Zone and Continental Shelf Act which did not mention any specific geographical areas. However, in Article 2 paragraph 3, Beijing opens the door for an agreement which diverts from the principles set out in the Act: `Conflicting claims regarding the EEZ and the Continental Shelf by the PRC and States with opposite or adjacent coasts shall be settled, on the basis of international law and in accordance with the principle of equity, by an agreement delimiting the area so claimed` (Sakamoto 2007, p. 22).